Medicare Levy

The Medicare Levy is a tax paid by Australian residents to cover health care charges.

The levy is payable on taxable income, and is superfluous to income tax payable. Individuals and families on higher incomes who do not have an appropriate level of private patient hospital cover may have to pay the Medicare levy surcharge

The Medicare levy is normally calculated at 1.5 per cent of your taxable income but this rate can vary depending on the individual's circumstances.

You may be exempt from the levy or it may be reduced:

• if you have a low income or
• if you are a prescribed person.

A Medicare levy calculator is available at the ATO website to help you calculate your financial obligation.

For more information see the Medicare Levy Guide on the ATO website.

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